Corporate governance adhere to several principles; shareholder recognition, stakeholder interests, clear outlining of board responsibilities, ethical behavior and business transparency.
First on the list is shareholder recognition that plays a vital role of maintaining stock price of a company. Most corporations tend to fall into a situation in which small shareholders with very minimal impact are often brushed aside in favor of the interests of the executive board and the majority shareholders. All shareholders whether it be the board or the minority, should have a voice and should be well-represented at general meetings.
Corporate governance should be aware of stakeholder interests. A positive relationship with the community and the press can be created if your company take its time in addressing concerns and request of non-shareholder stakeholders.
Board responsibilities must be clearly outlined to avoid confusion between the company and to the majority shareholders. It is imperative that all board members must share the same goals and vision for the...